PLN: LNG to Become Backbone of National Energy Transition Until 2034

Infrastructure for gas and LNG must be built to support Indonesia’s energy security and energy transition.

Denpasar (ANTARA) - PT PLN Energi Primer Indonesia (PLN EPI) projects that the need for gas in national power plants will continue to rise until 2034, with liquefied natural gas (LNG) confirmed as the backbone in maintaining energy supply and supporting Indonesia’s energy transition.

PLN EPI’s President Director, Rakhmad Dewanto, stated in Denpasar on Monday that PLN’s gas requirements are estimated to grow by around 4.5% per year.

In fact, LNG needs are projected to increase significantly to offset the decline in domestic pipeline gas supply while meeting the growth in national electricity demand.

“The power sector is projected to grow the highest at around 4.6-5.4% per year, driven by electrification in the transportation, industrial, residential sectors, and data centre growth,” said Rakhmad at the 11th Annual LNG Supply, Transport & Storage Forum 2026 in Bali.

He explained that, based on McKinsey projections and the National Electricity Supply Plan (RUKN) 2025, the contribution of electricity to national primary energy needs is estimated to rise from 28% in 2025 to 38% in 2035.

PLN estimates that national electricity production will nearly double from 283.7 TWh in 2024 to around 581-584 TWh in 2034.

Although the renewable energy mix continues to increase, gas remains the main support for the reliability of the national electricity system.

He explained that by 2034, gas is projected to contribute around 18-23% of the national power plant mix, or equivalent to 132.3 TWh, an increase of 2.3-2.7 times compared to the current level.

In line with this, PLN’s gas needs are estimated to rise from 1,748 BBTUD in 2026 to 2,490 BBTUD in 2034. Meanwhile, LNG cargo needs will increase from 103 cargoes to 214 cargoes over the same period.

To anticipate this surge in demand, PLN EPI is strengthening long-term gas and LNG contracts, including the development of various strategic infrastructures such as floating storage regasification units (FSRU), LNG carriers, onshore receiving units (ORU), and the construction of a national gas pipeline network.

Several projects under development include FSRU West Java 1 and 2, FSRU East Java, FSRU Bali, and FSRU Cilegon.

Additionally, the development of LNG clusters in Sumatra-Kalimantan, Sulawesi-Maluku, North Papua, and Nusa Tenggara is ongoing to support the gasification programme for power plants in island regions.

Overall, PLN EPI targets a regasification capacity of 3,850 MMSCFD with storage capacity up to 1.2 million cubic metres.

According to Rakhmad, strengthening LNG infrastructure is no longer merely an option but a strategic necessity to reduce dependence on fuel oil (BBM) and strengthen national energy resilience.

“This is no longer a choice. Gas and LNG infrastructure must be built to support Indonesia’s energy security and energy transition,” he said.